You are here: Home - Saving & Banking - News -

Rates rocket on personal loans

Written by:

The credit crunch is hitting interest rates on unsecured loans hard, with many lenders becoming tougher on their loan approvals, according to research from independent financial comparison website

A personal loan of £5,000 now has an average interest rate of 9.5%, while that offered on a loan of £7,500 is 7.97%.

Sean Gardner, chief executive of, said: “Borrowers are feeling the pinch with those wanting to borrow less getting squeezed the most.

“It may seem paradoxical but you will be charged more on average for borrowing less.

“There are fewer competitive deals around for people borrowing £5,000 than for those wanting £7,500.

“Lenders take the view that those borrowing more are in general a better risk than those borrowing less and offer better rates as a consequence.

According to its research, 1.91 million adults were turned down for unsecured personal loans in the six months leading up to September 30th, compared to 1.39 million people in the previous six months.

Gardner added: “There are still good deals out there if you need a personal loan but borrowers need to be aware that lenders are getting tough on applications and rates.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Lies, damn lies and finances

A significant 30% of people are hiding a financial secret from their partner, according to a survey by Cater Allen...